FOR IMMEDIATE RELEASE
September 30, 2005
Governor Granholm Signs Budgets that Provide Increased Funding for Education, Promotes Economic Growth
Budgets protect health care, higher education, public safety, environment
LANSING – Governor Jennifer M. Granholm today signed into law fiscal year 2006 appropriations bills for community colleges, higher education, school aid, and the departments of Community Health, Corrections, Education, Environmental Quality, History, Arts and Libraries, Labor and Economic Growth, Natural Resources and Transportation.
“Despite continued struggles with a changing global economy, we have provided Michigan citizens with a fiscally responsible budget that both protects our quality of life and grows our economy,” Granholm said. “I am proud that we have increased funding to historic levels for public schools and that we will continue to protect health care for our most vulnerable people.”
Community Colleges:
The fiscal year 2006 appropriation for the state’s 28 community colleges is $281.3 million. Operations support for community colleges totals $275.1 million; funding for Renaissance Zone tax reimbursements is increased by $500,000, to $2.9 million; and the At-Risk Student Success program is continued at $3.2 million.
Community Health:
The Department of Community Health (DCH) budget for the coming fiscal year totals $10.3 billion, which includes $2.95 billion in general fund money. This represents a significant commitment for health care and mental health services for Michigan’s most vulnerable citizens.
Highlights of the DCH budget include:
• full funding for Medicaid caseloads;
• restoring Medicaid chiropractic and adult dental services;
• full funding for the Children’s Special Health Care Services program;
• partial funding for local public health hearing and vision screening services with the intention of targeting these funds toward preschool and elementary age children;
• new co-pays on each of the following services: $1 per outpatient visit; $50 per first day of inpatient stay; $2 per physician visit; and $3 per hospital emergency room visit; and
• new Medicaid fraud reduction programs, including preventing provider mispayments, eligibility determination errors, and seeking recoveries from pharmaceutical manufacturers for fraudulent market activities for a savings of $19.4 million.
Corrections:
The total budget for the Department of Corrections is $1.88 billion; the general fund portion is $1.79 billion.
In House Bill 4831, the Governor has vetoed funding for the Michigan Youth Correctional Facility in Baldwin, Michigan. This costly facility is not needed and was originally constructed to house violent young offenders, but the need for this facility never materialized. As the Legislative Auditor General has pointed out, far less expensive prison beds can be used to house young offenders at great savings to the taxpayers of the state. The savings amounts to $17.8 million annually.
While the Legislature offered departmental cuts as an alternative, the proposed cuts are not realistic and would force the department to make drastic cuts that would result in layoffs. The Governor feels this alternative is not acceptable.
Education:
The fiscal year 2006 budget for the Department of Education is $117.8 million, which includes $16.5 million in general fund dollars.
Environmental Quality:
The total budget for the Department of Environmental Quality is $455.3 million; the general fund portion is $31.8 million. The department continues its commitment to restoring and enhancing Michigan’s environment for the protection of public health and the preservation of our natural resources.
Higher Education:
Funding for the state’s higher education system for fiscal year 2006 totals $1.73 billion, with a general fund level of $1.58 billion. The Governor is proud that no university will see their funding reduced from current year levels.
Funding for university operations is increased by $16.4 million from the original recommendation, as agreed to by the Governor and Legislature. This amount includes $6.9 million to pay for a funding floor set at $3,650 per student, which provides extra support to Grand Valley State University, Saginaw Valley State University, and Oakland University. An additional $6.9 million is used to provide support to universities according to the House of Representatives funding model. Finally, $2.5 million is appropriated across-the-board to ensure that each university will be paid at least the same amount in the institution’s 2006 fiscal year as was paid this fiscal year.
Other highlights of the higher education budget include:
• funding for the MSU Agricultural Experiment Station at $33.2 million and Cooperative Extension Service at $28.6 million – both remain at current year levels;
• funding for the Tuition Grant Program at $58.8 million;
• the Michigan Merit Award Program is funded at $126.4 million and includes funding to begin payment of the middle school award;
• support for the Tuition Incentive Program is increased to $12 million as recommended by the Governor; and
• funding for the King-Chavez-Parks Programs remains funded at this year’s level of $5.1 million.
“To compete in a changing economy, we must ensure that every child in Michigan has access to education beyond high school,” Granholm said. “Protecting universities keeps us on the path toward doubling the number of college graduates. Creating a new Merit Scholarship that provides $4,000 to students must be the next step.”
History, Arts & Libraries:
Senate Bill 274, the fiscal year 2006 appropriation bill for the Department of History, Arts and Libraries, provides $53.9 million, $41.8 million in general funds, to support the state in its efforts to preserve Michigan’s history and historic treasures, provide the very best in state-of-the-art library technology and services, and to promote creativity in the arts and cultural disciplines.
The Governor expressed her disappointment that the Legislature chose to reduce payments to state libraries and arts and cultural institutions that benefit all Michigan citizens while supporting projects that only benefit a few. For that reason the Governor vetoed those projects inserted by the Legislature and recommends they use available funding to restore aid to libraries and arts and cultural grants equally.
In addition, the Governor acknowledges the work done by the Mackinac Island Park Commission in identifying $200,000 that could be used to offset general funds. While the Governor has approved the $1.5 million for the Commission, she hopes the additional $200,000 could be used to restore aid to state libraries and arts grants.
Labor & Economic Growth:
Senate Bill 276 provides $1.3 billion to support the operations for the Department of Labor and Economic Growth (DLEG). This budget provides the funding necessary for the department to continue to support the health, safety, and economic well-being of the public through effective regulatory oversight, job creation and economic development.
Although the fiscal year 2006 budget does not provide an appropriation for the Michigan 21st Century Jobs Initiative or its predecessor, the Technology Tri-Corridor: Life Sciences Initiative, the funding for these economic development efforts will be replaced by the securitization of tobacco settlement proceeds, to be appropriated in subsequent legislation.
The Fire Protection & Liquor Law Enforcement Grants will remain funded at the 2005 level of $7.4 million and $6.0 million respectively. Also, funding for the Fire Fighter’s Training Council will be maintained at $1.6 million. In addition to that funding, an $800,000 interdepartmental grant from the Department of State Police federal homeland security funds was added for the fire safety programs, of which 40 percent, or $320,000, is specifically directed to support the Fire Fighter’s Training Council.
Natural Resources:
The total budget for the Department of Natural Resources is $272.9 million; the general fund portion is $25.6 million
School Aid:
House Bill 4887 appropriates nearly $12.8 billion for fiscal year 2006 to support K-12 education in Michigan, with $11.4 billion in state funds and $1.4 billion in federal funds. This represents an increase of $290.3 million, or 2.3 percent, over fiscal year 2005 funding.
This budget demonstrates that education remains Michigan’s top priority. It increases the minimum per-pupil foundation allowance for schools by $175 per pupil to $6,875, the highest in Michigan history. The bill maintains funding for academically at-risk children at $314.2 million; school readiness preschool grants at $72.8 million; and continues our commitment to early literacy programs by appropriating $3.3 million for Great Parents, Great Start. This budget also provides over $950 million in state funding for special education programs.
State Police:
Senate Bill 280 provides over $550.8 million, $235.4 million in general funds, to support the critical law enforcement activities of the Michigan State Police for the 2006 fiscal year.
Highlights of the State Police budget include:
• $121.1 million in support for at-post trooper operations;
• $27.2 million to support forensic services to all agencies within the criminal justice system; and
• an increase in federal Department of Homeland Security funding by $12.0 million for reimbursement of costs associated with assistance in recovery efforts to the Southern Gulf Shore states from Hurricane Katrina.
The budget also includes the Governor’s recommendation to use state restricted carry-forward dollars to fund the administration of training grants within the Michigan Commission on Law Enforcement Standards. Using this carry-forward means that there will be no reduction in law enforcement training grants for the coming fiscal year. However, in order to clear up any confusion, the Governor will support efforts that will restore the general fund and replace the restricted funds.
As it currently stands, the budget continues the plan to close the Groveland Township, Grand Haven and Iron River State Police posts, but includes language that stipulates the three posts remain open for 60 days after the beginning of the fiscal year. The Governor hopes to keep the posts open permanently.
“I remain committed to working with the Legislature to find a bipartisan solution to keep the three State Police posts open,” Granholm said.
Transportation:
Senate Bill 281 totals over $3.4 billion for departmental operations, state and local infrastructure repair and reconstruction projects, public transportation and intermodal programs for the Department of Transportation (MDOT).
The Governor has vetoed several road projects because project selection decisions should be made by transportation professionals at MDOT. These transportation experts work with local transportation stakeholders to make recommendations to the State Transportation Commission, who then approves specific contracts. Because the Governor believes that many of the projects have merit, she will be recommending an immediate supplemental to restore the vetoed funds without earmarks.
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